09Jan
By: Ryan Ponce On: January 9, 2024 In: Downtown San Diego, Market Update Comments: 0

2023 Year End Review – Downtown San Diego’s Real Estate Market

Real estate was dramatically slower in 2023. There were far less transactions when compared to prior years, but there were also less homes listed. The rapid and dramatic increase in interest rates froze the market in a sense, with many people waiting on the sidelines for some type of correction. The numbers and charts below will all be focused on Downtown San Diego. Each year, I take a deep dive into the numbers so that I am better armed to help my clients, whether they are buying or selling. It is my job to understand and navigate the market. In doing so, I share this information with you here!

First, I want to start with the number of transactions. In 2023, Downtown San Diego only saw a total of 546 sales. That is extremely low. By far, the slowest year I have seen in my 12 years of selling real estate in Downtown San Diego. If you take a look below, I created a table going over the last 10 years of sales. As you can see, 2023 had anywhere from -28.16% to -59.38% less sales compared to any given year over the last decade. In contrast, 2021 had the most sales we had ever seen in Downtown San Diego in a given year (excluding new building launces).

Year Number of sales  Year Vs 2023
2023 546 +0.00%
2022 867 -37.02%
2021 1344 -59.38%
2020 901 -39.40%
2019 760 -28.16%
2018 824 -33.74%
2017 870 -37.24%
2016 967 -43.54%
2015 921 -40.72%
2014 774 -29.46%

With the lack of sales, you would assume that inventory increased to very high levels and prices also were negatively impacted. At least, that would have been my initial thought and it would be wrong. Inventory did rise in 2023. In fact, it rose by about 38%, but we went from 100 listings to start off the year to just 138. While that is, as previously mentioned, an increase of 38%, that is still about 45% below pre-pandemic levels. We started January 2020 with 249 listings in Downtown San Diego.

Prices essentially remained unchanged. We went from an average price of $912,330 in 2022 to $904,955 in 2023. That is a decrease of approximately $7,375, which is less than 1%! The biggest differences between the market in 2022 and 2023 are, in my opinion, the time it takes to sell and the list to sales price percentages. In 2022, the average list price was $906,055 and the average sales price was $912,330. That means that the average sales price was 100.7% of the list price, or +0.7% (+$6,275 over asking).  However, in 2023, the average list price was $921,372 and the average sales price was $904,955. That means that the average list to sales price percentage is 98.2%, or -1.8% under the asking price. I want to be very clear that this, by no means, is signaling a weak market. This is actually quite high for Downtown San Diego. It is, however, a sign that the market is not as strong as it was in 2021-2022. It is really important to understand that how a property shows and where it is priced will have a larger impact on the success of the sale moving forward. We are no longer in a time where “everything sells”.

All Downtown

Homes Sold

3 Months - 114 Homes
6 Months - 257 Homes
12 Months - 546 Homes

Average/Month

  • 12mo
  • 6mo
  • 3mo

Months Supply

  • 12mo
  • 6mo
  • 3mo

Available Homes

  • Active
  • Pending

> or = $2,500,000

Homes Sold

3 Months - 4 Homes
6 Months - 6 Homes
12 Months - 11 Homes

Average/Month

  • 12mo
  • 6mo
  • 3mo

Months Supply

  • 12mo
  • 6mo
  • 3mo

Available Homes

  • Active
  • Pending

*All information is deemed reliable, but not guaranteed. Information obtained through the San Diego MLS on January 2nd, 2024.

And Always Remember, It Matters Who You Work With!

Give me a call today at (619) 228-6790 or email me at Ryan@livingthesandiegolife.com for more information or to schedule a tour of the neighborhood!

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